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Benefits of Chip Card Technology

There's a safer way to make purchases — Chip Cards. All of the major credit card companies have begun to re-issue cards featuring a microchip for enhanced protection against fraud.

The “chip cards” represent a new standard of payment in the U.S. — but they’ve already been in use for years in Canada, Mexico, South America, Europe, and Asia. In those places, chip technology has already demonstrated its ability to minimize fraudulent purchases.

How Today’s Magnetic Strips Work

Standard magnetic strips on credit and debit cards have proven to be somewhat limited. Your PIN, CVV code, and other security information are tied directly to each card, and that information never changes.

So when perpetrators of fraud use technology to copy card information at payment terminals, they can gather all the data they need to use your money. Likewise, when your card leaves your sight — for instance, in a restaurant — someone can easily copy down your account and CVV to make signature-based purchases.

How Chips Will Improve Security

Microchip-enabled cards add a whole new level of protection. With chips, authentication codes are generated dynamically — so they change every time you use them. That makes them nearly impossible to duplicate for fraudulent purposes.

How Your Payment Experience Will Change

Rather than swiping your card, you’ll now insert your chip card directly into the payment terminal, and processing will take a few seconds longer. You may still be asked for either your PIN or your signature, but your information is much more secure.

Plus, the new payment method means your card will never leave your sight when you make a purchase, even in restaurants. That’s because the new “EMV” (Europay, MasterCard, and Visa) terminals are portable, so your server can bring one right to your table for processing.